UN Convention: Int'l Carriage of Goods by Sea

• The document is the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea.
• It was published by the United Nations in Vienna in 2009.
• Addressed are State Parties who are in agreement as follows.

General Provisions

• "Contract of carriage" is defined as one where a carrier undertakes to transport goods for freight, including by sea and potentially other modes.
• "Volume contract" is a carriage contract for a specified quantity of goods in scheduled shipments over time, with quantity specifications including a minimum, maximum, or range.
• "Liner transportation" is a transportation service accessible to the public with ships running on a set schedule between ports, with sailing dates published.
• "Non-liner transportation" refers to any transportation that is not liner transportation.
• "Carrier" is a person who enters into a carriage contract with a shipper.
• "Performing party" refers to someone other than the carrier fulfilling carrier obligations related to receiving, loading, handling, stowing, carrying, keeping, unloading, or delivering goods under the oversight of the carrier.
• A "performing party" does not include entities retained by the shipper, documentary shipper, controlling party, or consignee rather than the carrier.
• "Maritime performing party" is a performing party fulfilling obligations between a ship's arrival at the loading port and its departure from the discharge port, or an inland carrier performing services exclusively within a port area.
• "Shipper" is a person entering a contract of carriage with a carrier
• "Documentary shipper" is someone other than the shipper named as such on transport documents
• "Holder" means a person with a negotiable transport document who is identified as the shipper or consignee in an order document, or the bearer of a blank endorsed order or bearer document or the person to whom a negotiable electronic transport record is issued.
• "Consignee" is the person entitled to receive the goods under a contract, transport document, or electronic record.
• "Right of control" means the right under the carriage contract to instruct the carrier regarding the goods.
• "Controlling party" is the one entitled to exercise the right of control according to Article 51.
• "Transport document" is one issued by the carrier evidencing the receipt of goods and contains the contract of carriage.
• "Negotiable transport document" uses wording such as "to order" or "negotiable", confirming that goods are consigned to the shipper's, the consignee's order, or to the bearer.
• A negotiable transport document can not be outlined as “non-negotiable” or “not negotiable”.
• "Non-negotiable transport document" is any transport document that is not negotiable.
• "Electronic communication" refers to information sent, received, or stored by electronic, optical, digital, or similar means for later use.
• "Electronic transport record" refers to electronic information issued by a carrier for carriage, encompassing logically connected data that confirms receiving the goods and terms of the contract.
• "Negotiable electronic transport record" uses terms like "to order" or "negotiable" and meets the criteria of Article 9, paragraph 1.
• A negotiable electronic transport record can not be outlined as “non-negotiable” or “not negotiable”.
• "Non-negotiable electronic transport record" is any electronic transport record that is not negotiable.
• "Issuance" of a negotiable electronic transport record means issuing this record with procedures ensuring exclusive control from creation until invalidation.
• "Transfer" of a negotiable electronic transport record means to transfer exclusive control over the record.
• "Contract particulars" are details within a transport document or electronic record about the carriage contract or goods, including conditions, notes, signatures, and endorsements.
• "Goods" means merchandise of any kind that a carrier agrees to transport as part of a carriage contract, encompassing packing and any equipment or container not supplied by the carrier.
• "Ship" is any vessel transporting goods by sea.
• "Container" includes any type of transportable unit load like a container, tank, or flat, used to consolidate goods, along with related equipment.
• "Vehicle" refers to a road or railroad cargo vehicle.
• "Freight" is the payment to the carrier for transporting goods under a contract of carriage.
• "Domicile" is the location of a company or legal entity, including its registered office, central administration, main business location, or the habitual residence of an individual.
• "Competent court" is a court in a Contracting State that can exercise jurisdiction over a dispute according to its internal rules.
• The Convention's interpretation should consider its international nature, promote uniformity, and maintain good faith in trade.
• Required notices, confirmations, consent, agreements, declarations, and other communications must be in writing and can include electronic forms.

Applicability

• Any provision in this agreement that makes available a defense or limit to the carrier's liability is relevant in any arbitral or judicial proceeding.
• Whether it is in contract, tort, or otherwise, that action is brought about due to loss, damage or delay.
• The defense applies to a maritime performing party, the master or crew, or employees of the carrier or performing party.
• Any term in this convention that may provide defense for the shipper applies to any arbitral or judicial proceeding.
• Whether it is contract, tort, or otherwise, that action is brought against a shipper or their subcontractors.

Scope of Application

• This applies when the receipt and delivery of goods occur in different states, and the loading and discharge ports are also in different states.
• If the contract designates any of the following locations within a Contracting State: the place of receipt, the port of loading, the place of delivery, or the port of discharge.
• This applies regardless of anyone's nationality.
• This is specifically excluded from contracts in liner transportation such as charter parties and other shipping contracts.
• Does also contract carriage in non-linear transportation except when a transport document is not issued, and there is no charter contract.
• This applies as between the carrier and the consignee even if they are not original parties.

Electronic Transport Records

• Anything that would be on a transport document can be recorded on an electronic one if both the carrier and shipper consent to the creation of an electronic transport record.
• The transfer of an electronic transport record holds the same weight as the transfer of a physical document.
• Using negotiable electronic transport records requires procedures for issuance and transfer to ensure record integrity.
• Procedures have to ensure the holder can be verified and can confirm that delivery was successful.
• The above procedures must be referenced in contract particulars and be easily available.
• Carriers and holders can agree to replace transport and electronic documentation.
• In this case, the holder will surrender the negotiable transport document to the carrier and issue to the holder a negotiable replacement document and indicate it is a direct replacement.
• Once the document or record is replaced, it loses any effect or validity.

Carrier Obligations

• The carrier must transport the goods as per the contract to the consignee, and deliver
• The carrier's responsibility starts when they or a performing party receive the goods and ends when delivered.
• The law may require goods to be handed to an authority from whom the carrier collects them.
• The carrier's responsibility starts when they collect the goods.
• The carrier must receive, load, handle, stow, carry, and deliver the goods with proper care and consideration.
• Carriers and shippers retain an option by mutual agreement of allowing the shipper, documentary shipper, or the consignee to load, handle, stow or unload the goods.
• Specific expectations exist for the carrier to adequately maintain the ship and safety of goods.
• Carriers can take reasonable measures regarding potentially perilous goods.
• Parties may sacrifice goods to sea to save others during transport.

Liability for loss, damage, or delay

• The carrier is liable for loss or damage to goods, and for delays, if the event occurred during their responsibility period as per Chapter 4,
• The party is relieved of liability if they can prove fault does not lie with them.
• The carrier is relieved of liability if various events or circumstances caused the damages, such as acts of God, perils of the sea, war, quarantine, strikes, fire, latent defects, etc.
• Negligence from the shipper, problems during loading by another party, wastage of goods, defective packing, and measures to attempt to save either life or property can cause relieve of liability.
• The carrier is liable if their fault, or that of their personnel caused the issue.
• If another event caused the loss or damage, the carrier must prove it was not their fault.
• Even without fault, the carrier is liable if the loss was due to an unseaworthy ship, improper crewing or equipment, or unsafe holds.

For other persons

• The carrier is responsible for the breach of obligations that the vessel's employees caused.
• Maritime performing party is subjected to liability imposed on the carrier.
• If a carrier agrees to assume more obligations than the Maritime party can agree or accept, the Maritime party is not bound.

Joint and several liability

• If more than one performing party is liable, it is only up to the amount they agree per this document.
• The aggregate liability of multiple people shall not exceed the overall agreed-upon limit.
• A delay in delivery is declared when the goods are not delivered as expected within the agreed-upon time.
• Compensation is calculated by the value of the goods at the time and location of delivery.
• Compensation excludes loss of or damage to goods beyond what is already specified.

Notice

• There is a presumption, in absence of proof, that the carrier has delivered the goods according to their description unless general descriptions of loss or damage were given.
• Notice requirements do not affect claims to loss, nor do they affect the proof that Article 17 requires.
• Loss requirements are not required if both parties jointly inspected the goods.
• Compensation is not payable unless notice was given within 21 days of goods delivery.
• Notice to the performing party is the same as the carrier.
• The parties in the dispute shall provide each other access to facilities, tallying goods, and relevant records.

Additional Provisions

• Carriers are not deprived from any defense or imitation of this Convention unless an event of deviation compromises the contract.
• Goods may only be carried on the ship deck if required by law, if they are specially fitted, or with trade practices.

Obligations of the shipper to the carrier

• The shipper must provide goods ready for carriage, and they must withstand transport without being a detriment.
• A third party is appropriate to be in charge if agreed upon in article 13.
• The third party will also stow the goods and secure them.
• The carrier and shipper must respond to requests for handling the transport and the other's abilities reasonably.
• The shipper must also provide documents to the carrier.
• Shippers may be liable if they failed to meet specific obligations required.
• The shipper is relieved as well from any damages unless they are the cause.

Contract Particulars

• The shipper must provide info as to the goods' description, quantity, weight, and any leading marks.
• Transport and records must include the name and address of the carrier as well, and what date they were received on if the goods were loaded.
• The records must include the name or address of the recipient and location to deliver goods.
• If the carrier has additional knowledge, they still perform their duties before issuing the document.
• Additional articles note the rights and responsibilities for signature, providing information on a contract, qualifications of goods, and container specifics.

Delivery

• When goods arrive, the consignee must take them at the agreed-upon time.
• Both can also acknowledge the receipt of goods.
• If a document is not negotiable, then the owner must deliver the goods to the recipient.
• Those goods can then be refused if the person cannot identify themselves as the recipient.
• It is not deliverable if The carrier is then able to follow the controlling party's suggestions, and they are then relieved of responsibility.
• Article 46 outlines that document surrender was issued.
• Article 47 notes more details for that action to take place as well.

Rights of the controlling party

• The right to control the goods should be limited in modifying instructions and when it expires.
• The shipper is in control unless they designate the other party. They are also responsible for identifying themselves at the right of control.
• There are more specifics as laid out in Articles 51 and 52.
• If the instructions cannot be reasonably executed, they may decline them.
• Articles 53, 54 and 55 identify actions by the carrier and variations to contract carriage.
• Parties may be able to change information depending on if they adhere depending on document specifications.

Transfer of Rights

• Once the negotiable document is issued, the holder may give those rights up to the other person.
• A holder that is not a shipper does not assume any liability unless reason lies because of holder.
• The carrier needs to limit liability in any given case in the convention (875 units of account per package, or 3 units of account per kilogram of the gross weight).
• When goods are consolidated, that too is the measurement for damage.
• The unit for those amounts is the Special Drawing Right outlined by the International Monetary Fund.
• Compensation due can be calculated by article 22, in line with two and one-half items the freight payable if there is a delay.
• A carrier's liability can be removed if any of the carrier's obligations were related on a personal account, or recklessly.

Time for Suit

• Judicial proceedings cannot take place two years after the breach.
• That time is the moment the carrier has delivered all the required goods.
• Article 63 notes specific times for extending the right for suit.
• An action for indemnity may be instituted after the aforementioned period if the indemnity action is instituted within a specific time.

Jurisdiction

• An agreement can only be used if all parties agree and they clearly state the names, addresses and courts clearly.
• Other people are only bound by the agreement if in one of the required places if they had proper recognition and agreements.
• An arrangement also exists for instituting judicial proceedings if the maritime performing party is in the right location.
• The requirements of this chapter or an international convention have to be fulfilled is there needs to be an arrest or protective measures.
• The action may be instituted only in a court designated pursuant to both article 66 and article 68 if a single action is brought up.

Arbitration

• Parties may agree to resolve any disputes via arbitration.
• Agreements are binding for all parties to the agreement, and they may be in a volume form.
• Articles on contractual terms depend on how they are imposed, and what is void.
• Derogation must be given when the shipper had an opportunity to consider what was correct.

Animals

• Animals have limits to liability based on what resulted in the damage.
• Conventions do not impact applying any international laws by the carrier.
• There are multiple instances as to specific agreements and instances with nuclear incidents.

Final Clauses

• The final clauses note depositary actions of approving changes.
• It was done in New York and signed by recognized members.